There are 148,400 semi-commercial properties across England and Wales, creating a sizeable specialist finance opportunity for brokers according to analysis from Together.
More than half of the properties are shops with flats above or pubs with living accommodation, while the market also includes guest houses, workshops, restaurants, salons and holiday units with accommodation attached.
Blackpool has the highest concentration, with more than one in five business-rated properties combining residential and commercial use.
The findings come as Together says purchases of commercial and mixed-use property across the UK increased by 18% between 2022 and 2025, rising from 95,660 to 113,750 transactions.
SPECIALIST FINANCE DEMAND
Together’s own commercial and semi-commercial mortgage completions increased by 9.8% over the same period.
Tanya Elmaz (main picture, inset), managing director of intermediary sales at Together, says semi-commercial property is becoming an increasingly relevant area for brokers working with landlords, investors and business owners.
Such properties can require more specialist underwriting because lenders need to consider both the residential and commercial elements of the security.
Rental income, tenant strength, lease terms, property condition, intended use and exit strategy can all influence the assessment.
Elmaz says semi-commercial property can also provide another option for landlords looking beyond traditional buy-to-let, but brokers need to consider the complete income and risk profile of an asset.
‘LOOK AT THE FULL PICTURE’
She says: “The commercial element can provide an additional income stream, but brokers should help clients look at the full picture, including lease quality, void periods, local demand, service arrangements and how easily the residential and commercial parts could be let or refinanced separately.”
Potential issues include highly specialised commercial premises, unusual occupier arrangements, short or informal leases, restricted access to residential accommodation, shared services and planning uncertainty.
Elmaz adds that early fact-finding can be particularly important, including establishing how the property is divided, whether units are self-contained, existing lease arrangements and whether refurbishment or a change of use is planned.
She says: “The fundamentals remain the same: who pays the rent, how secure is that income, what happens if the tenant leaves, how adaptable is the property, and what is the client’s route to repayment or refinance?”
